October 23, 2019 / 5:36 AM / 25 days ago

Channel tunnel operator Getlink sticks to 2019 guidance

(Reuters) - Getlink (GETP.PA) confirmed its 2019 core profit guidance on Wednesday after reporting almost flat year-on-year third quarter revenue amid Brexit uncertainties and falling British consumer confidence, the Channel tunnel operator said.

FILE PHOTO: The logo of Channel tunnel operator Getlink, formerly known as Eurotunnel, is seen during the company's 2018 annual results presentation in Paris, France, February 21, 2019. REUTERS/Charles Platiau

“I confirm the guidance of 2019 for 560 million euros EBITDA,” a Getlink spokesman said when asked about 2019 as the guidance was not included in the company’s trading update.

This target reflects Getlink’s reference scenario of Britain leaving the European Union without a divorce deal, he added.

The group, formerly known as Eurotunnel, also said in the statement it confirmed a core earnings target of 735 million euros ($817 million) for 2022.

However, previously the company saw core earnings exceeding 735 million euros in 2022.

For Getlink, which in July saw a no-deal Brexit as very likely, the stakes are high. In 2018, the group carried 21 million passengers, 17 million trucks, 2.7 million cars and 26% of trade between Britain and the European Union, supporting thousands of jobs.

“A lack of clarity for all parties involved in the supply chain with regards to the Brexit outcome, the decline in consumption in the UK market as well as the slowdown in the German economy were all factors that weighed upon cross-Channel trade,” the company said in a statement.

Revenue for the July-September period came in at 305.1 million euros, while those for the first nine months of the year grew just 1% to 828.1 million euros.

On Tuesday, EU Council President Donald Tusk said EU leaders should delay Brexit after Prime Minister Boris Johnson paused legislation on his deal following a parliamentary defeat.

In August, to prepare for the day when Britain leaves the EU, Getlink announced a series of measures, including the creation of pre-boarding customs checkpoints called “pit stops”, and a 240-space secure parking zone for Britain-bound trucks.

The parking facility’s capacity grew to 290 spaces in the third quarter, Getlink added on Wednesday.

Reporting by Piotr Lipinski in Gdansk and Dominique Vidalon in Paris, additional reporting by Charles Regnier and Pawel Goraj; editing by Richard Pullin and David Evans

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